Interview with Willemijn Geels, Head of Development for IHG: A Deep Dive into Hospitality Industry Trends and Developments. In this interview, Willemijn shares insights into IHG's performance, development strategies, and the broader hospitality industry's trends.
Market Performance and Resilience
The hospitality market experienced robust performance and development in the past year. Globally, IHG's Revenue Per Available Room (RevPAR) increased by 16%, contributing to over $1 billion in bottom-line performance. Willemijn attributes this success to the resilience of the industry.
Development Highlights in Europe
IHG had a stellar year in Europe, signing 75 hotels and opening 50. Although overall industry signings in Europe were up by 10%, the market hasn't yet reached the 2019 levels. Despite this, there was significant dynamism and positive momentum across various regions.
- United Kingdom: The UK market saw great momentum, driven by an unlock in transactional activity, presenting new opportunities for growth.
- Southern Europe: Southern Europe, including Iberia, Italy, Turkey, and CIS countries, played a critical role in IHG's 2023 strategy. Notably, Turkey led in industry signings, demonstrating strong growth potential.
Brand Portfolio and Market Adaptation
IHG continues to expand its brand portfolio across different segments, from midscale to luxury. The company has focused on conversion opportunities, with 60% of all room signs in the past year being former conversions.
- voco: A brand tailored for conversions, now boasting over 100 hotels in operation and pipeline.
- Vignette Collection: A luxury collection brand experiencing significant momentum with properties in Porto, Lisbon, Liverpool, and Rome.
Strategic Expansion in EMEA
IHG is set to introduce new brands to the EMEA region, including the Garner brand, initially launched in the US. This strategic move aligns with the industry's shift towards luxury and lifestyle segments, which saw substantial growth between 2019 and 2023.
- Luxury Lifestyle Segment: IHG signed more than 30% of rooms in this segment, capitalizing on the increasing demand for upper upscale and luxury offerings.
- Urban and Leisure Growth: The company aims to expand in both urban and leisure...
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